TDS new rule 25% reduction

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A new rule introduced on 13th May 2020 reduced Tax Deducted at Source (TDS) by 25% on non-salary payments. This means rates like 10% for rent have been reduced to 7.5%. The new rule applies if the payment is made after 13th May 2020. While there was some confusion, the due dates for TDS payments have not been extended due to the lockdown.

amruth

amruth (Querist)
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25 May 2020 Hi All

My question is now from 13.5.2020 government has reduced TDS 25% on non-salaries for example : on Rent 10% TDS was there 200000x10%=20000/- now 25% reduction means 7.5% TDS is applicable so for new TDS deduction is 200000x7.5%=15000/- on rent. Please clarify.

Thanks & Regards.
Amruth Kumar

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 May 2020 Yes now 25% reduction means 7.5% TDS is applicable so for new TDS deduction is 200000x7.5%=15000/- on rent.

amruth

amruth (Querist)
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27 May 2020 Ok Sir Thanks very much, TDS on contract for companies 2-0.25=1.75% and TDS professionals 10-2.5=7.5% and so on for all TDS. This upto 31st March 2021.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 May 2020 Welcome..................

amruth

amruth (Querist)
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03 June 2020 Dear Sir,

If new rule on TDS starts from 13.5.2020, if we get a invoice on 2nd May 2020 then which TDS rule is applicable. New TDS rule or Old TDS rule applicable.

Thanking you

Amruth Kumar

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 June 2020 New TDS rule applicable if payment is made after 13th May.

amruth

amruth (Querist)
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04 June 2020 Thanks very much Sir

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 June 2020 You are welcome........

amruth

amruth (Querist)
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09 June 2020 Dear Sir,

TDS Payments due dates extended for the financial year 2020-2021. Due to Lockdown.

Thanking you

Amruth Kumar